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The direct taxes include taxes paid by individuals, called the ‘Personal Income
taxes’ and the corporates’ taxes, called the ‘Corporate Income tax’.
Indirect taxes mainly include the tax in the form of ‘GST’.
As you can see, India Inc collected close to 14.8L Crore as taxes in 2018-19;
this includes both direct and indirect taxes.
Remember, when GST is charged, a portion goes to the state and a portion to
the centre. Hence when you look at 14.8LCr, this is the ‘net to the centre’,
which means that the actual tax collection is higher than 14.8L Cr. Of course,
you can get the exact value by inspecting this report further, but I’ll refrain
from doing so. But if I remember right, roughly 2/3rd is retained by the centre,
1/3 is distributed to states.
Non-tax revenue – Apart from the tax revenue, the Government has a ‘non-tax
revenue’ as an income source. The non-tax revenue source mainly includes
the dividends paid out by the PSU companies (companies like LIC, NTPCL,
ONGC, NALCO etc.), where the Government of India is a majority stakeholder.
Apart from dividend income, the Government also has revenue by selling
stakes in these companies, oen referred to as the disinvestment program.
The non-tax revenue for 2018-19 was roughly 2.4L Cr.
Total revenue is the sum of these two revenue lines, which is roughly 18.2L Cr.
The Government has expenses, and these expenses can be categorized into
two buckets, i.e. the ‘Revenue Expenditure’ and ‘Capital Expenditure.
Revenue Expenditure – These expenditures include subsidies across various
Government schemes, salaries to Govt employees, interest payments etc. The
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